Superloop Limited (ASX) has announced a significant uptick in its customer base and market share, bolstered by strategic acquisitions and a focus on high-speed connections in the consumer market. With a successful migration of Origin Energy's customer base and continued robust trading in the Consumer segment, Superloop's market share in the nbn network has risen by nearly 2%, reaching 5.9%.
Strategic Highlights and Operational Success
The completion of the Origin subscriber migration marks a significant milestone for Superloop, showcasing the effective collaboration and professionalism of both the Superloop and Origin teams. This achievement not only strengthens Superloop’s position in the market but also underscores its capability to handle large-scale migrations and integrate services seamlessly.
In the Consumer segment, Superloop added 19,300 new customers, bringing its total to 637,000. The company has successfully captured 7% of new nbn orders, outpacing its current market share and showing exceptional performance in the strategic high-speed segment.
The Wholesale segment has also seen substantial growth, highlighted by a new $4-5 million contract with Leaptel for nbn backhaul services over three years. This win is part of Superloop's momentum in supporting challenger brands that continue to capture nbn market share.
Growth in Smart Communities and Business Contracts
Superloop's Business segment has made significant strides, particularly in Smart Communities, securing over 6,000 new lots, including a landmark broadacre contract with AVJennings for 1,100 Fibre-to-the-Premise lots. Additionally, the segment celebrated the launch of the first Mirvac Build to Rent site and is currently developing between 10,000 to 15,000 lots.
Notable business wins include securing contracts with major corporates like Grant Thorton, IC Markets, Wagner, Ford, and Citadel. These partnerships are set to further enhance Superloop's credentials in network and security solutions.
Financial Outlook and Future Prospects
Superloop's financial position remains strong, with the company affirming its FY25 Underlying EBITDA guidance of $83-88 million, marking an increase of 53-62% on FY24. The planned capital expenditure for FY25 is projected to be between $28-30 million, covering property, plant & equipment, and intangible assets.
Comments from Management
Paul Tyler, CEO and Managing Director of Superloop, commented on the update, noting, "Superloop's impressive momentum into FY25 sets a solid foundation for the rest of the year. We're seeing significant growth driven by our targeted strategies in the Consumer and Business segments and the integration of major contracts like Origin Energy. Our focus remains on accelerating revenue and profitability, assessing strategic acquisitions that align with our growth objectives."
Board Endorsement
This trading update has been authorized and approved for release by the Superloop Board of Directors, reflecting their confidence in the strategic direction and operational achievements of the company thus far in FY25.
